November-December . 2024 | @ AGROBiz

JOHOR Plantations Group Bhd ( JPG ) has unveiled an ambitious 10-year plan designed to establish the company as a leading integrated palm oil producer in the global market .

The roadmap emphasised enhancing operational efficiency and diversifying revenue streams for a sustainable future .

The strategy is built around three key pillars :

• Adopting a circular economy model to generate new income .

• Expanding the company ’ s downstream segment .

• Strengthening its upstream operations . JPG ’ s Managing Director ,

Mohd Faris Adli Shukery , outlined the company ’ s vision of becoming the preferred global supplier of sustainable and traceable oils and fats .

He said : “ As we look to the future , we are more committed than ever to elevating JPG to new heights , ensuring

SABAH continues to assert its dominance as a powerhouse in Malaysia ’ s palm oil industry , producing 4.5 million tonnes of crude palm oil ( CPO ) in 2023 .

This remarkable achievement is the result of exceptional fruit yields and industry-leading oil extraction rates , positioning Sabah as the largest CPO producer in the country .

Chief Minister Datuk Seri Hajiji Noor underscored the importance of innovation to ensure the industry ’ s continued growth , urging the State to adapt to meet both national and international certification standards .

Palm oil remains Sabah ’ s most significant export , contributing 22 per cent or RM6.22 billion to the State ’ s revenue between 2018 and 2023 . To secure its future , the state government is committed to driving sustainability and technological innovation continuous value creation and long-term growth for our stakeholders .”

EXPANDING BEYOND PALM OIL

The first pillar focuses on sustainability , with the company aiming to reduce greenhouse gas emissions by 2025 and achieve net zero emissions by 2050 .

JPG will harness biogas from palm oil mill effluent to power operations and supply biomethane to Gas Malaysia Green Venture Sdn Bhd .

Additionally , the company plans to extract red palm oil from mesocarp fibre , a byproduct of fresh fruit bunches ( FFBs ), for use as fuel .

Under the second pillar ,

JPG is targeting growth in the downstream palm oil sector . Proceeds from its recent initial public offering ( IPO ) will fund the development of an integrated sustainable palm oil complex , slated for completion by the third quarter ( Q3 ) of 2026 .

The complex will feature a refinery producing speciality oils and fats alongside a palm oil mill , palm kernel crushing plant , and animal feed plant . This initiative will allow JPG to enter new markets and capture additional margins .

The third pillar seeks to enhance JPG ’ s upstream operations , focusing on replanting , using high-yielding planting material , boosting crude palm oil ( CPO ) production , and advancing automation .

JPG ’ s strategic plan is designed to ensure long-term growth and sustainable profitability , with the company confident that these initiatives will propel it to new heights in the coming years .

within the sector .

Sabah ’ s 128 palm oil mills can process up to 34.7 million tonnes of fresh fruit bunches ( FFBs ) annually , with an impressive oil extraction rate of 20.4 per cent , the highest in the nation .

The State ’ s industrial infrastructure , including the 1,781-hectare ( ha ) Lahad Datu

THE 2024 Agricultural Census , which concluded on Oct 10 , is set to be a game-changer in boosting Malaysia ’ s agriculture sector , said Economy Minister Rafizi Ramli .

The Department of Statistics Malaysia ( DOSM ) is currently analysing the data collected during the census , and the findings will soon be presented to the government .

Rafizi pointed out that the last Agricultural Census was conducted in 2005 , meaning that for two decades , Malaysia ’ s food security and agricultural planning relied on outdated information .

Rafizi mentioned : “ Although we are still analysing the data and will present the final results to the government shortly , initial findings suggest that the actual agricultural capacity in our country is lower than previously reported .”

As part of a broader effort to improve government services and decision-making , DOSM is also analysing data at the district level .

Rafizi emphasised that elected representatives , whether in Parliament or at the state assembly , should be made aware of the specific conditions in their districts .

Moreover , detailed reports are now available , covering issues like poverty , housing conditions , and employment status in each district .

At the event marking DOSM ’ s 75th anniversary , new living cost statistics were unveiled , including the Basic Expenditure for Decent Living ( PAKW ) and the Cost of Living Index .

For the first time , DOSM also published a Gross Domestic Product ( GDP ) report by district , aiming to enhance state and district-level planning and narrow socioeconomic gaps .

Palm Oil Industrial Cluster , supports various industries , enhancing the sector ’ s growth .

Additionally , Sabah plays a crucial role in reducing greenhouse gas emissions , contributing 25.75 million tonnes of biomass from palm oil activities . This creates vast opportunities for renewable energy initiatives and technological innovation in the coming years .

Hajiji has called on all stakeholders , including investors and policymakers , to work together to position Sabah as the global leader in sustainable palm oil production .

By focusing on advanced processing , sustainability , and cutting-edge technologies , Sabah aims to contribute to both the prosperity of the industry and a greener future for all .